Chapter 1: Buying, Having and Being: An Introduction To Consumer Behavior Flashcards
Define consumer behavior
The processes involved when individuals, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires and to define and express their identities
Name two consumer entities
- Personal consumer
- Organizations/ business consumer
Explain how consumer behavior is dynamic
It is an ongoing process that extends much beyond the moment a consumer hands over the money
What is consumption
Refers to all facets of the consumer behavior process which include how we observe and make sense of the world around us, how we choose and purchase things and how we communicate our identity
What does it mean to consume
It is that people buy products not for what they do but for what they mean. Brands that align with our underlying needs. Our consumption choices help us define our identity.
Define identity
It is a multi-layered concept that involves our personal self and our social self
What is the basic marketing concept
Organizations exist to satisfy needs and marketers can satisfying these needs only to the extent that they understand the people or organizations. That’s why understanding consumer behavior is good business
What is the horizontal revolution
Communication that no longer flows just from top-down (from companies to consumers) but one that flows across regular users
Explain social media
Social media refers to the online means of communication and collaboration among interconnected and independent networks of people, communities and organizations.
What is the internet of things
The growing network of interconnected devices embedded in objects that speak to one another (apple products working together). This means that we are also witnessing machine to machine (M2M) communication, as well as artificial intelligence (Siri, ChatGPT)
What is the meta universe built on
- It’s built on a virtual economy, often based upon cryptocurrency and digital goods and assets.
- It’s “always on” and operates in real time
- it exists in the physical world but it also involves immersive environments using virtual or augmented reality technology
- it allows people to possess virtual identities that don’t necessarily correspond to who they are in real life
Name the two forces that drive consumer behavior
- The desire to belong (in-group bias): consumers prefer culturally related brands that meet their desire to connect with home
- The drive for cultural distinctiveness or the feeling of being different: drives consumers to seek out brands that represent other cultural groups
What is transmedia
Refers to the web of media from traditional media platforms like magazines and television to digital media like a video games and the metaverse
What is transmedia storytelling
It is synchronized communication telling a story across multiple platforms and formats
Understanding consumer behavior means _____
Staying on top of consumer trends
What are some important consumer trends that will impact marketing strategies in the near future
- sharing economy: there is a de-emphasis on the value of owning products as opposed to leasing them on a as needed basis
- authenticity and personalization: consumers place a premium on knowing the lineage of the companies. Consumers will also demand more individualized experiences
- blurring of gender identity and gender roles: movement away from gender binarism as gender identity becomes more fluid and more people do not identify themselves as male or female
- diversity and multiculturalism: racial and ethnic divisions will blur as people are exposed to other groups in person and online
- social shopping: the traditional lone decision maker will become harder to find as access to product reviews on potential purchases turns many buying decisions into committee decisions
- income inequality: the gap between rich and poor will continue to grow
- healthy and ethical living: a continued focus on wellness, physical fitness and environmental sustainability
- simplification: a movement away from hyper choice and more towards decluttering one’s life and positions. They will be more priority on experiencees rather than acquiring things
- interconnection and the internet of things: the rapid growth of AI will facilitate the popularity of products
- anonymity: data hacking, cyberbullying and advertising tracking will fuel a desire for the right to be forgotten, the desire to create an alternative identity.
The collection and analysis of extremely large data sets is called _____
Big data
Explain proactive consumers and user generated content
It is the degree to which consumers want organizations to market with them, rather than market to them. And user generated content is an example of that
Explain how consumption both contributes to the world’s problems and provides solutions
Problem - consumption has led to growing mental and physical health problems, climate change, addiction and other issues that threaten our quality of life as individuals and as a society.
Solution - a greener planet will require that consumers make better and more environmentally sound choices. For businesses, responsible marketing is about a focus on meeting consumer needs while making a positive impact in our communities
Distinguish between a need and a want
A need is something a person must have to live or to achieve a goal.
A want is a specific manifestation of a need that personal and cultural factors determine. For example, while hunger is a need that we all have, a want may be how it’s satisfied. One person may want a burger while another may go for a vegan meal
